Secured Credit Card Offers Explained

There are a number of reasons why a person should consider selecting from secured credit card offers. They prove to be a great way to learn about how credit works, and give you a line of credit that can help establish or improve your current credit score.

Unlike a traditional credit card, the amount of money you have for purchases is based on the money you have placed inside of a secure account. For example, if you have $500 in the account, you can borrow up to $500.

In some cases if you pay on time and don’t go over the limit, your credit card may become partially secured, or your entire deposit might be refunded to you according to your bank’s policies.

When you are looking at the different secured credit card offers that are available, you must consider all the fees and interest that are associated with these cards. Since each bank has different policies it is vital you get the one that best suits your needs.

We’ll take a moment to look at a couple secured credit card offers you might select from:

Citi Secured Card

With the Citi Secured Card, you have a card that contains all the benefits of a standard credit card, but with a secured balance that you set. Your deposit is placed into a certificate of deposit that begins to earn you money at the same time giving you access to a credit card. This means your card could essentially begin to pay for itself.

This credit card can be used in all situations that credit might be needed, best of all after the minimum term of 18 months has passed, you could become eligible for an unsecured card from this company. This is a great way to have some savings while getting a card for emergencies.

Wells Fargo Secured

With a low $18 annual fee and 17.49% in interest the Wells Fargo secured card is a great option. Because it is applied towards a collateral account, you can add funds as needed to any Wells Fargo location, you may not however pull from these funds until you have paid off enough of the balance to drop it below what is currently owed.

Keep in mind that secured credit cards pose the same risks as a standard credit card. While they report all payments that are made on time, they will report negative ones as well. Use your best judgment when you are choosing any of these secured credit card offers and understand the terms and conditions that come with using them.

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